A share of stock can be thought as the a call option on the assets of the firm with a strike price equal to the face value of debt.

Name: A share of stock can be thought as the a call option on the assets of the firm with a strike price equal to the face value of debt.
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A share of stock can be viewed as a call option on the firm's assets, where the strike price is the face value of the debt. If the firm's assets exceed the debt, shareholders benefit, similar to exercising a call option.

A Share of Stock Can Be Thought as the a Call